Agenda item

On 15th June 2021 Cabinet approved an award to Mulalley & Company Ltd for In September 2019 Home for Haringey commenced a procurement to identify contractors to carry out gas related servicing and repairs to its properties within the Western and Eastern regions of the borough.

The Managing Director of Homes for Haringey under delegated powers awarded two contracts, each for an initial term of two years with an option to extend up to three years in one year increments up to (maximum term of five years). These contracts were awarded to:

•   Purdy Contracts Ltd – Contract value £2.39m per annum

•   K&T Heating Services Limited – Contract value £2.36m per annum

The Council was now approaching the end of the initial contract term and would like to exercise the option of extending both of the above contracts for a further 12-month period commencing October 2022.

That for the approval of future contract extensions as permitted under the two contracts, the Councils Standing Orders and in accordance with regulation 72 of the Public Contract Regulations (2015) is delegated to the Director of Placemaking and Housing.

The Cabinet Member RESOLVED 

1. To approve the implementation of Contract Standing Order 10.02.1 b. pursuant to Contract Standing Order 16.02 and agree to extend both current Gas Servicing contracts with the following contractors:

•   Purdy Contracts Limited, Value of 1st year extension is £2.39 million.

•   K&T Heating Services Limited, value of 1st year extension is £2.36 million

2. Each contract is to be extended for a period of 12 months commencing from 2nd

October 2022 until the 1st of October 2023.

3. To delegate the approval of future contract extensions, as permitted under the two contracts, the Councils Standing Orders, and in accordance with regulation 72 of the Public Contract Regulations (2015), to the Director of Placemaking and Housing.

Reasons for decision 

The reasons for seeking to extend this contract were set out below:

In order to continue with the servicing and maintenance of Domestic & Commercial heating systems with minimal disruption to the residents.

To ensure continuity of ensuring that we are adhering to regulation 36 (Duties of Landlords) under the gas safe regulations 1998 to keep our residents safe.

This was the most economically advantageous route as a new procurement would inflate the contract sum under the current financial climate.

When the original procurement was conducted there were large savings made over the previous contract.

Alternative options considered

Undertaking a full procurement exercise to re-tender the contract

As the contract was procured as a 2 year plus 3 x 1-year extensions it would not have been viable to go through a full tender exercise as this could take between 9-12 months to procure, also the contractors' performance was good, so it was felt that there was no need to re-procure for a new contract at this stage. However, there was an interest for this service to be insourced within the Council, a review will be conducted within the next 12 months to explore this option further.

The Council also must consider the complexity of procuring such a contract, so by extending as per the contract award we are not leaving any of the borough's residents vulnerable in terms of servicing and repairs.

Also, as the extension is due in October the seasonal aspect would be in the Council's favour in order not to disrupt residents having any loss of services in the colder months.

Do Nothing

This was not an option, due to the Councils statutory health and safety obligations.

In-house Delivery

Homes for Haringey has only recently returned to the Council and there has not been sufficient time or capacity to undertake a review of this option. An enabling review will be undertaken within the next 12 months to explore service delivery options further.